Which of the Following Should Not Be Considered a Benefit

question 39

Multiple Choice

Which of the following should not be considered a benefit to a firm that is issuing an IPO?

• A) access to additional capital
• B) provide an alternative to cash for future acquisitions
• C) have another source,other than cash for executive compensation
• D) limits the founder's ownership dilution

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Definitions:

Preferred Stockholders

Investors who own shares in a company that have preferential rights over common stockholders, typically regarding dividends and assets upon liquidation.

Common Stockholders

Individuals or entities that own common stock in a company, granting them voting rights and a share in the company's profits through dividends.

Paid-in Capital

The amount of money that a company receives from selling its stock directly to investors, above the par value of the shares.

Real Estate Transactions

Deals involving the sale, purchase, or exchange of property between parties.